Download The Tourism Marketing Environment - Nelson Education

Chapter
9
MARKETING
COMMUNICATIONS:
Public Relations,
Personal Selling,
and Word of Mouth
Prepared by
Simon Hudson, Haskayne School of Business
University of Calgary
and
Marion Joppe, University of Guelph
9-1
Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Topics
•
•
•
•
•
Roles and functions of public relations
Public relations techniques
Roles and objectives of personal selling
Sales process and the staffing of sales personnel
Difference between direct marketing and direct
response advertising
• Key direct response advertising tools
• Importance of word of mouth in the promotional mix
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Copyright © 2009 by Nelson Education Limited.
Role of Advertising and Sales Promotions
Chapter
9
Public Relations
• Public Relations (PR)
– the activities that a tourism or hospitality
organization uses to maintain or improve
its relationship with other organizations or
individuals
• Publicity
– attention received through news media
coverage
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Various
Publics in
the
Tourism
and
Hospitality
Industry
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Functions of PR Departments
•
•
•
•
•
•
Establishing corporate identity
Government relations
Crisis management
Internal communications
Customer relations
Marketing publicity
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Public
Relations
Techniques
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Public Relations Techniques
• Press release (news release)
– short article about an organization or
event written to attract media attention
and intended to lead to media coverage
– most popular and widespread PR activity
– must be as carefully targeted as an
advertising media schedule to be effective
– see Figure 9.3, Example of a Press
Release
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Public Relations Techniques
• Feature stories
– articles of human interest that entertain,
inform, or educate readers, viewers, or
listeners
– longer and have less immediate news
value than news releases
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Public Relations Techniques
• Travel Exhibitions and Road shows
– bring together all parts of the industry (suppliers,
carriers, intermediaries, and destination
marketing organizations)
• Event sponsorship
– financial support of an event (e.g., a car race, a
theatre performance, or a marathon) by a
sponsor in return for advertising privileges
associated with the event
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Public Relations Techniques
• Sponsorship of causes
– this is part of the wider activity of cause-related
marketing, a technique whereby organizations
associate themselves with support for a good
cause
• Publications
– annual reports, brochures, newsletters, and
magazines can draw attention to an organization
and its products and services, and can help build
its image and convey news to target market
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Public Relations Techniques
• Winning or sponsoring awards
– an example is automotive awards presented in
magazines such as Motor Trends
• Celebrity visits
– encouraging celebrities to use tourism and
hospitality products or service
• Product placement
– insertion of brand logos or branded products into
movies and television shows
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Personal Selling
• Personal Selling
– a personalized form of communication in
which a seller presents the features and
benefits of a product to a buyer for the
purpose of making a sale
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Personal Selling
• Roles of Personal Selling
– Gathering marketing intelligence
– Locating and maintaining customers
– Promoting to the travel trade
– Generating sales at point of purchase
– Relationship marketing
– Provide detailed and up-to-date
information to the travel trade
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Personal Selling
• Objectives of Personal selling
– Sales volume
– Cross-selling, Up-selling, and Secondchance selling
– Marketing share
– Product-specific objectives
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Personal Selling
• Cross-selling
– offering a customer the opportunity to
purchase allied products that go beyond
the obvious core products
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Personal Selling
• Up-selling
– upgrading price and profit margins by
selling higher-priced products
• Second-chance selling
– trying to sell additional services to a
customer who has already booked
services
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
The Sales Process
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
The Sales Process
• Prospecting
– the process of searching for new accounts
• Cognitive Dissonance
– Following up after closing reduces buyer’s
level of cognitive dissonance (uncertainty
after making a purchase)
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Sales Management
• Sales management
– the management of the sales force and
personal selling efforts to achieve desired
sales objectives
– roles include:
•
•
•
•
•
recruiting
training
motivating/rewarding
sales planning
evaluating sales performance
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Direct Marketing and
Direct Response Advertising
• Direct marketing
– form of marketing that sends messages
directly to consumers, using addressable
media, such as mail
• Direct response advertising
– Advertising designed to generate a
response by any means that is
measurable
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Key advantages of direct marketing
Table 9.1
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Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Strategic
Considerations
for Major Forms
of Direct
Response
Advertising
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Direct Mail
• Solo direct mail
– a direct mail piece sent out by one
company and delivered by the company
itself
• Cooperative direct mail
– a direct mail offer delivered as part of a
package that includes offers from other
companies
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Telemarketing
• Telemarketing
– using the telephone to reach customers or
prospective customers
• Call centre
– a central operation from which a company
operates its inbound and outbound
telemarketing programs
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Direct Response Television
• Infomercial
– a commercial, usually 30 minutes long,
that presents in great detail the benefits of
a product or service on the television
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Word of Mouth
• Word of mouth
– communication about products and
services between people who are
perceived to be independent of the
company that is producing or providing
the product
– tool that works particularly well for the
tourism and hospitality industry
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Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
Power of Word of Mouth
• Independent credibility
• Experience delivery
• More relevant and complete
• The most honest medium
• Customer driven
• It feeds on itself
• Expert power
• Experts like to influence
• Saves time and money
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• Illusory force
Copyright © 2009 by Nelson Education Limited.
Public Relations, Personal Selling, and
Word of Mouth
Chapter
9
What
Causes
Sales?
Illusion
versus
Reality
9-28
Figure 9.6
Copyright © 2009 by Nelson Education Limited.